Echostar shares surge 5.12% intraday after $17B spectrum deals with SpaceX and AT&T resolve FCC issues and boost debt reduction.

Echostar Corporation (SATS) surged 5.12% intraday following the announcement of a $17 billion spectrum sale to SpaceX, resolving an FCC probe and enabling debt reduction. The deal, split between cash and SpaceX stock, strengthens Echostar’s balance sheet and positions Starlink to enhance satellite-to-cell coverage. The company also reported strong Q3 results, including 223,000 wireless net adds, historic lows in DISH TV churn, and a $1.5 billion enterprise broadband backlog. Additionally, the formation of EchoStar Capital as a growth vehicle, led by Hamid Akhavan, underscores future expansion opportunities. While a $16.48 billion impairment charge from decommissioning unused 5G assets was disclosed, the spectrum sales and operational momentum drove the intraday rally. Analysts highlighted the strategic shift and improved liquidity as catalysts for investor optimism.